New Policy for Independent Contractors

We sent an email out earlier that referenced a new CA law.

We would like to clarify our new policy.

This is not a new law but instead relates to a California Supreme Court legal decision that will influence current laws that exist regarding independent contract work within the State of California. Additionally, 2 new bills are in the California Legislature regarding independent contractors. We believe Language Services businesses may be deeply affected by this change in California towards independent business professionals. (See the below links).

https://www.vcstar.com/story/money/business/2019/03/25/california-supreme-court-independent-contractor-abc-test/2953598002/ and

https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/two-california-bills-address-independent-contractor-misclassification.aspx

Based upon this current court decision and the possibility of changes in the definition regarding independent contractors, we have decided to require professionals who subcontract with us to be operating within a business structure of either LLC, or Corporation (S or C) if they legally reside and/or do business with us within the State of California. Many of our linguists already have done this, and we know that other interpreting companies are instituting similar policies or plan to do so.

We recommend that you consider which type of entity best fits your business goals.

We will be implementing this change beginning at the end of June, 2019.

The California Guidelines for Independent Contractors

The current ruling revised the criterion for being an independent contractor. The new “ABC test” relies on the following details to identify what classifies independent contractors:

1. If the employer can prove, without any doubt, that they do not exercise control over the worker’s ability to perform a certain task.
2. If the worker is performing a task or job that is outside the functions of the business in question.
3. If the worker has an established trade or a business that they customarily engage in.

What to do next?

After you receive your official documentation:

Please send a copy of your new W9 and EIN by:

email:

processing@languagepeople.com

or courier service:

Language People
PO Box 2635
Temecula, CA 92593

Thank you for being part of Language People

We would like to say “Thank You!” for being part of Language People are our continued success. If you have any questions about this new policy or have questions about how this might effect your relationship with Language People, please complete the form below and submit your questions. We will work to respond to you asap.